Look at the long term, stocks expert tells Ocala audience

Noted financial analyst and author Charles "Chuck" Carlson told a packed room in Ocala Thursday to remove emotions when making their investments, to look at the long term and to use trend tools to make wise investment choices. (Submitted photo)

By Andy FillmoreCorrespondent

Published: Thursday, April 18, 2013 at 10:25 p.m.

Last Modified: Thursday, April 18, 2013 at 10:25 p.m.

Noted financial analyst and author Charles "Chuck" Carlson told a packed room in Ocala on Thursday to remove emotions when making their investments, to look at the long term and to use trend tools to make wise investment choices.

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"Investors have to maximize the power of time and not worry about the short-term highs and lows of the market," Carlson said. "I interviewed perhaps 200 successful investors for a book, and remaining in the market long term was one of the biggest factors," Carlson said, citing investors who "got nervous" and sold off stocks rather than hold on to them when the market dropped dramatically in 2008.

"If you had an automatic reinvestment plan, it would have rebounded after 2008," he said. "The 2008 drop of about 35 percent is likely to occur only about every 70 years."

Carlson's talk, "Stock Market and Investment Opportunities," drew an audience of about 200. It was part of a continuing series of lectures at the Institute for Human and Machine Cognition, a technical research and development organization with offices in Ocala. The series is conducted in partnership with the College of Central Florida.

Before Thursday night's lecture, Carlson, 52, laid out a few of the basic market terms.

"A bear market is one in steady decline, A bull market is a market in long-term increase, perhaps six to eight months or even two to three years," Carlson said.

"Since 1926, the stock market has given an average return of nine to 10 percent. Parents or grandparents might want to set up an account for their children and grandchildren," Carlson stated.

Stocks that can be purchased directly from companies like Harley Davidson, Disney and Coca-Cola can provide investors an "installment plan," Carlson said, by allowing stock purchases of $50 per buy after an initial buy of $250 or $500.

Carlson told the group he believed in the "reversion to the mean" when it came to exaggerated swings in some stocks or gold.

"Usually the (item) will return" to earlier prices after short-term changes, he said. "Stocks are similar to our lives. We usually find a ‘golden mean' or ‘groove' rather than the extremes of births, deaths and new jobs. The times of stress take too much energy to drive them."

Carlson commented on the current market and some top performers.

"I view the market as bullish and remaining in the 14,000 point range. There could be a correction, and we'll see the market drop to maybe 13,300 in the short term," Carlson said.

<p>Noted financial analyst and author Charles "Chuck" Carlson told a packed room in Ocala on Thursday to remove emotions when making their investments, to look at the long term and to use trend tools to make wise investment choices.</p><p>"Investors have to maximize the power of time and not worry about the short-term highs and lows of the market," Carlson said. "I interviewed perhaps 200 successful investors for a book, and remaining in the market long term was one of the biggest factors," Carlson said, citing investors who "got nervous" and sold off stocks rather than hold on to them when the market dropped dramatically in 2008.</p><p>"If you had an automatic reinvestment plan, it would have rebounded after 2008," he said. "The 2008 drop of about 35 percent is likely to occur only about every 70 years."</p><p>Carlson's talk, "Stock Market and Investment Opportunities," drew an audience of about 200. It was part of a continuing series of lectures at the Institute for Human and Machine Cognition, a technical research and development organization with offices in Ocala. The series is conducted in partnership with the College of Central Florida.</p><p>Before Thursday night's lecture, Carlson, 52, laid out a few of the basic market terms.</p><p>"A bear market is one in steady decline, A bull market is a market in long-term increase, perhaps six to eight months or even two to three years," Carlson said.</p><p>"Since 1926, the stock market has given an average return of nine to 10 percent. Parents or grandparents might want to set up an account for their children and grandchildren," Carlson stated.</p><p>Stocks that can be purchased directly from companies like Harley Davidson, Disney and Coca-Cola can provide investors an "installment plan," Carlson said, by allowing stock purchases of $50 per buy after an initial buy of $250 or $500.</p><p>Carlson told the group he believed in the "reversion to the mean" when it came to exaggerated swings in some stocks or gold.</p><p>"Usually the (item) will return" to earlier prices after short-term changes, he said. "Stocks are similar to our lives. We usually find a 'golden mean' or 'groove' rather than the extremes of births, deaths and new jobs. The times of stress take too much energy to drive them."</p><p>Carlson commented on the current market and some top performers.</p><p>"I view the market as bullish and remaining in the 14,000 point range. There could be a correction, and we'll see the market drop to maybe 13,300 in the short term," Carlson said.</p><p>Carlson noted Apple, Chevron, J.P. Morgan Chase, Macy's, CVS and Comcast as strong performers.</p>